Contemplating Investing in Quantum Computing Stocks in 2022? Two Companies With Potential to Secure Millions for Your Retirement
Quantum computing is currently experiencing a surge in interest and investment, driven by advancements in error mitigation, AI integration, and hybrid development [1]. Companies like IBM, Google, and QueRa are working towards scaling up quantum processors, aiming to achieve quantum supremacy where a quantum computer solves a problem that would take a classical computer an impractical amount of time [4]. This year, 2025, has been designated as the International Year of Quantum Science and Technology by the United Nations, highlighting global interest in this field [4].
Qubits, or quantum bits, are the building blocks of quantum computing, allowing for the simultaneous investigation of multiple problems due to their ability to represent complex combinations of information [1]. In drug discovery, aerospace, encryption, material science, and genomics, quantum computing can yield significant benefits [1]. For instance, IonQ, a quantum computing company, uses atomic ions to create its quantum cores and offers computers with up to 36 qubits, with plans to release a commercial computer targeting 64 useful qubits by the end of 2025 [3].
However, it's important to remember that quantum computing is a marathon, not a sprint. Boston Consulting Group recently predicted that it could be until 2040 before there is a sustainable market for quantum hardware and software providers in the range of $90 billion to $170 billion [3]. With a market cap of $8.5 billion, IonQ's 2024 revenue was expected to be around $40 million [3]. Another company, Arqit Quantum, provides an encryption software platform that secures data and communication links in the era of increasingly powerful quantum computers [2].
Investments in quantum computing stocks such as IonQ and Arqit Quantum can be risky and potentially lead to dead money for many years. It might make more sense to gradually build a position in these stocks as they hold promise for the future. Microsoft recently declared 2025 as the year to become "quantum-ready," as quantum research is accelerating [2]. However, with 105 qubits, Google's Willow chip is still far from what's required for many practical applications [2].
In conclusion, while quantum computing has promising potential in various fields, it is essential to approach investments with caution. Stocks such as IonQ and Arqit Quantum might pay off in the long run, but their current valuations and lack of profitability should not be overlooked.
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In the world of finance, investing in quantum computing companies like IonQ and Arqit Quantum can be an attractive opportunity, given their potential in revolutionizing various industries. However, it's crucial to acknowledge that these investments come with significant risks and may not yield returns for several years.